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Section 162(a) allows as a deduction "all the ordinary and
necessary expenses paid or incurred during the taxable year in
carrying on any trade or business". The question for
consideration is whether petitioner is entitled under section 162
to deduct the cost of the meals with Dr. Zimmerman.1
Petitioner bears the burden of proving that the expenses in
question are ordinary and necessary business expenses. See Rule
142; Welch v. Helvering, 290 U.S. 111 (1933). "Daily meals are
an inherently personal expense, and a taxpayer bears a heavy
burden in proving they are routinely deductible." Moss v.
Commissioner, 80 T.C. 1073, 1078 (1983), affd. 758 F.2d 211 (7th
Cir. 1985).
In Moss, members of a law firm met daily at a local cafe to
discuss work-related matters. As in the instant case, the noon
hour was chosen as the most convenient and practical time for the
firm to hold meetings. This Court acknowledged the valid
business purposes for the lunch meetings, but nevertheless held
the costs of the meals to be nondeductible personal expenses,
rather than ordinary and necessary business expenses.
we are convinced that petitioner and his partners and
associates discussed business at lunch, that the
meeting was a part of their working day, and that this
1 Sec. 212, which applies to nontrade or nonbusiness
expenses that are costs of producing income, and sec. 217, which
applies to moving expenses, are not at issue in this case. Nor
were the expenses incurred while petitioner was traveling away
from home.
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Last modified: May 25, 2011